By LAURIE KELLMAN
Associated Press Writer
WASHINGTON (AP) - The tobacco industry conspired to cover up the health risks of smoking and the development of less harmful cigarettes, the Blue Cross and Blue Shield medical plans are charging in new lawsuits.
The Coalition for Tobacco Responsibility, representing Blue Cross and Blue Shield health plans in more than 35 states, filed federal lawsuits Wednesday against the tobacco industry in Seattle, New York and Chicago to recover the costs of treating sick smokers.
''Tobacco companies must be held accountable for their lies and for the damage they have inflicted on the health of this nation,'' said Dr. Michael McGarvey, chief medical officer of Blue Cross Blue Shield of New Jersey and spokesman for the coalition.
Despite that latest dose of bad publicity, the tobacco industry received good news this week, too. House Republican leaders on Tuesday rejected what many lawmakers believed was the chamber's best chance at a sweeping bipartisan tobacco bill that would have sharply raised cigarette prices and provided tobacco companies none of the lawsuit protection they demand.
''It is apparent that the GOP leadership wants to do what the tobacco industry wants them to do,'' said Rep. Henry Waxman of California, the Democrat with whom Commerce Committee Chairman Tom Bliley negotiated the plan. ''It was a genuine attempt at a bipartisan bill.''
GOP leaders objected particularly to the plan's sharp restrictions on public smoking and its lack of compensation for tobacco farmers and vendors, the sources said. Nor did it propose a settlement of the 40 state lawsuits against the industry.
The senior Republicans also objected to what they said was a request from Democrats that they accept or reject the deal within 24 hours.
Unlike Senate GOP leaders, senior House Republicans believe voters will not punish the party at the polls if it fails to pass legislation as broad as the $368 billion settlement reached in June by the industry and 40 states suing it, several of those present at the Tuesday leadership meeting said.
The new lawsuits accuse the five major tobacco companies and various industry trade groups of conspiracy, fraud, misrepresentation and violations of federal racketeering and antitrust laws.
The lawsuits accuse the industry of hiding the addictive nature of smoking, manipulating nicotine levels to increase the potential for addiction and marketing to teen-agers and children in attempts to create a new generation of smokers.
Except for the federal statutory claims, the lawsuits are similar to dozens of Medicaid cases brought by the state attorneys general.
R.J. Reynolds Tobacco Co., the maker of Camel, Winston and Salem brand cigarettes, called the Blue Cross and Blue Shield suits ''simply the latest example of groups lining up to get on board what they perceive to be the tobacco gravy train.''
In a statement, the company said American courts for 200 years ''have consistently rejected efforts by third-party payers'' such as insurance companies to collect damages. It cited dismissals last week in federal courts in Florida and Pennsylvania of suits by union welfare trust funds against the industry.
McGarvey said millions of people who don't smoke, including Blue Cross and Blue Shield participants, have paid more for health care as a result of the industry's tactics. The coalition represents more than 25 million people in 37 states and the District of Columbia, he said.
''For too long, the American people have paid for tobacco's illegal activities. It's time for tobacco to repay those costs,'' he added.
McGarvey said officials were still calculating what they believed was the amount paid out over the years for smoking-related health-care costs, but added: ''We know it's a very big number.''
By MICHAEL J. SNIFFEN
Associated Press Writer
WASHINGTON (AP) - Cigarette-maker Liggett & Myers' agreement to cooperate in a criminal investigation of the tobacco industry without getting immunity from prosecution shows that federal prosecutors are developing a strong case, observers say.
And Liggett's defection Tuesday also could undermine a campaign by the rest of the industry to water down a bill in Congress that would charge the industry half a trillion dollars for sick smokers and for luring teens to cigarettes.
Liggett, which markets L&M, Chesterfield, Eve and Lark cigarettes in the United States, agreed to tell prosecutors whether the industry hid evidence of smoking's health damage from Congress and regulators, manipulated nicotine levels and targeted children as future buyers.
Liggett also agreed to describe the control of research by the Council for Tobacco Research and the involvement of lawyers in directing research or crafting false or misleading statements by any tobacco company to Congress, the Food and Drug Administration and American consumers, the Justice Department said.
Tobacco executives told Congress in 1994 they had no knowledge of nicotine's addictive qualities or of health damage from smoking.
The company's decision could save it huge legal fees that arise in fighting any federal criminal probe, but the Justice Department's rejection of Liggett's plea for immunity was seen by Rep. Martin Meehan, D-Mass., as ''an indication that the Justice Department has a very strong case.''
Cliff Douglas, a leading anti-tobacco attorney in Ann Arbor, Mich., agreed.
Federal grand juries here and in the New York City borough of Brooklyn already have obtained under subpoena key documents from tobacco companies, their advertisers and suppliers, Douglas said. ''If the Justice investigators were in trouble, they would have given immunity to Liggett. This increases the likelihood of indictments.''
Meehan, a former state prosecutor who triggered the federal probe with a 111-page prosecution memo he gave Attorney General Janet Reno in December 1994, called Liggett's move a major development.
''By turning state's evidence, Liggett's cooperation can break the entire criminal investigation into the tobacco industry wide open,'' Meehan said.
The company agreed to supply ''evidence of crimes and fraud contained in documents'' the industry has kept secret on grounds of attorney-client or attorney-work product privileges, Justice said.
Meehan said cooperation by Liggett's executives and scientists ''is equally, if not more important'' because ''witnesses can confirm and interpret the information on those documents.''
The smallest of the top five tobacco companies, Liggett has been the leader in breaking a solid front of cigarette-makers before. It was the first to reach a settlement with 22 states that sued the industry to recover Medicaid funds spent on treating smokers. It still is alone in listing ingredients on its cigarette packs and labeling them addictive.
''More than two years ago, Liggett broke ranks with Big Tobacco, and we have consistently pursued a policy of cooperation rather than confrontation,'' said Bennett S. LeBow, chairman and chief executive of Brooke Group Ltd., which owns Liggett. ''We are now cooperating not only with Justice, but also with 41 states where we have settlement agreements and with numerous other parties.''
Other tobacco companies have mounted a multimillion-dollar ad campaign to kill Congress' leading tobacco bill, arguing it would raise taxes too high and drive companies and farmers out of business.
On Tuesday, Sen. John McCain, R-Ariz., who chairs the Senate Commerce Committee, said the companies really oppose his bill because it would ''reduce their ability to lock teens in as lifetime smokers.''
The bill would cost the industry more than $500 billion but would cap annual payouts at $6.5 billion a year, which would help industry stock on Wall Street. Cigarette-makers also want protection from lawsuits, but Douglas predicted Liggett's move will reduce lawmakers' willingness to limit liability.
By BILL BASKERVILL
Associated Press Writer
RICHMOND, Va. AP) - The head of the world's largest tobacco company attacked Sen. John McCain's sweeping anti-tobacco legislation today, saying it would have ''a draconian impact on the industry.''
If the bill were enacted, cigarette marketing in the United States alone would decline by 40 percent to 60 percent, Philip Morris Cos. Inc. chairman and chief executive Geoffrey C. Bible told the company's annual stockholders' meeting.
Bible said the McCain bill would boost the price of cigarettes from $2 per pack to $5 in five years.
The shareholders overwhelmingly rejected a proposal to protect young people from smoking in developing countries, as Philip Morris and other tobacco companies have promised to do in the United States.
Mary Assunta of Panang, Malaysia, told Bible that ''you sell us cigarettes that are more addictive and poisonous than those sold in the U.S. Philip Morris does not respect our children.''
She also contended the company is circumventing advertising laws in Malaysia. Holding up a red-and-black baseball cap emblazoned with the word ''Marlboro,'' Ms. Assunta said the caps were distributed widely by Philip Morris in supermarkets in the Asian country.
Bible said advertising in Malaysia is regulated by the government and that Philip Morris' advertising there is ''within the law.''
McCain, R-Ariz., proposed in his bill a cigarette industry payout totaling $516 billion, well above a $368 billion settlement the tobacco industry reached last June with the attorneys general of 40 states suing it.
The measure would increase the federal tax on a pack of cigarettes by $1.10 by 2003 and give the Food and Drug Administration greater controls over tobacco products.
Support for McCain's proposal has eroded in recent weeks since Sen. Orrin Hatch, R-Utah, offered a $398 billion package of public health and anti-smoking programs, which he proclaimed is a ''reasonable approach.''
''The McCain bill is a mirage,'' Bible said. ''It's a total campaign of misleading the American people.''
A South Boston man remains in critical condition at Duke University Medical Center after his motorcycle collided with a car Wednesday afternoon in South Boston.
Timmy Leroy Miles, 25, was headed east on College Street, near its intersection with Howard Avenue, when a car attempted to make a u-turn in his path, according to South Boston Police Lt. H.B. Rice.
That 1997 Plymouth was driven by Ercelle E. Martin, 59, of South Boston and had been parked on the south side of College Street, according to the investigation.
When she attempted to make the u-turn, Mile's 1991 Honda 600cc motorcycle slammed into the driver's side door, police said.
Martin was not injured, but Miles was transported to the Halifax Regional Hospital for treatment, then flown by helicopter to Duke University Medical Center.
A Duke hospital spokesperson stated late Thursday afternoon that that Miles' condition was "critical, but stable and not expected to change during the night."
Damages to the Plymouth were estimated at $3,000, while the motorcycle was declared a total loss, according to Lt. Rice.
The 2:45 p.m. incident is still under investigation by SBPD Officer Chris Carswell.
In other matters investigated by the South Boston Police, two separate thefts at Good's Lawn and Garden Center in Centerville occurred in the past week, according to SBPD Lt. Rick Loftis.
A Winston Pro rear tine tiller valued at $629 was stolen from the facility sometime during the daylight hours of last Friday. It was displayed in front of the building when it was stolen, police said.
Then, another tiller valued at $389 was stolen from the same location sometime during the day on Monday, Lt. Loftis added.
Anyone with any information on the two thefts is asked to call Crimestoppers at 575-8477
The five South Boston Town Council candidates explore issues facing the town in this the secnd of a three-part series presented by the Gazette-Virginian.
In today,s issue candidates answer three questions with the final iquestion aired Monday.
Candidates seeking the three open Council seats are W.C. "Buddy" Wilborn, Thomas S. Raab, Eula P. Payne-Williams, Edward "Ed" Owens and Josephine Marshall.
Were you in favor of the recent boundary adjustments? Yes, No, Please explain the reasons for your answer.
Marshall
I sincerely hope that the voters will understand that our voluntary boundary adjustment was to provide South Boston with a sound future. I was in favor of the recent "Voluntary Agreement" worked out between the county and the town" because it gave the gown the opportunity to give tax relief to all property owners, well below any reassessment margin, and to give a 15% discount to those business concerns which pay BPOL.
Every study that has been done, the Blue Ribbon Study Commission, the Commission on local government, Don Lacy (a facilitator on boundary adjustments), all recommended that South Boston expand its borders. Without a strong, diverse and broader economic base, South Boston, nor the region, had a bright future because the town could not continue to invest in water/sewer facility improvements which are so crucial to bringing in new industry and businesses, as well as providing current businesses with a chance to grow. Areas such as Sinai were in need of our services. This is why these areas were put in the last counter proposal to the town by Halifax County which also aided in the voluntary settlement of the issue. In short, this process showed that the county and the town can and will work together on matters of mutual concern, this is also as evidenced by the resolution that we adopted to reserve water and sewer capacity for the county. Lastly, we left out all of the industrial areas; thereby, demonstrating that such adjustments can be worked out cooperatively.
Wilborn
I was not in favor with the recent boundary adjustments. I look at this from a long range view. I saw increased expenditure by trying to provide services to the expanded areas. When can we offer all the services the town provides? Curb and gutter, street lights, sidewalks, water and sewer, and others?
Owens
Since I was not privileged to all of the information used for consideration and decision-making of the boundary adjustment, I am only in a position of trying to make the post-boundary adjustment era work.
Raab
NO. I believe that the boundary adjustment dispute did nothing more than create ill will among the citizens. Unfortunately, the Town was within its legal rights according to our state law . The problem of boundary adjustments needs to be addressed not by our local governments, but by our General Assembly in Richmond.
Payne-Williams
I actually had no input in the boundary adjustment, but I'm willing to work for the betterment of all people doing the post boundary adjustment era.
If present law continues, South Boston would be eligible for another annexation in 12 years. Would you be in favor? Yes or No.
Marshall
Even if the laws do remain as they have for eons, it is too early to give a simple yes or no response to this question. One should wait to see what develops in the first five to 10 years of the twelve year period before making any assumptions about the advisability of doing this or not. If future utility rates and or fee schedules are changed, in town utility savings may serve some industries better fiscally. If the town continues to lower tax rates and the county raises consumer utility or other such taxes, it may benefit commercial, industrial or residential property owners to petition to enter the town. The county and the town left the door open by way of a resolution that each adopted which stated that "51% of those petitioning could become part of the town." Some businesses have already inquired about the possibility of becoming a part of the town.
Wilborn
I would not be in favor of another Annexation. This would be based on my understanding of the Feasibility study. The costs to annex subdivisions versus revenue increase would be minimum. To have a positive revenue gain from annexation, industries and commercial business, such as Restaurants that produce the meal' s tax, must be included in the annexation. Since the current annexation includes so many of the businesses, the next step would be subdivisions and industry.
Owens
As it stands now, I would only be in favor of another boundary adjustment in 12 years if the people who would be most affected by such an effort voiced resounding support for it If after having numerous public hearings and meetings with the people who would be most directly affected, and providing them with accurate and current pertinent information about the impact of the proposed boundary adjustment, a majority of the population was in favor of such, then I would support the voices of the citizens.
Raab
NO. Same as answer # 4.
Payne-Williams
We must learn to live within our means. Therefore, I would be opposed to further boundary adjustment which would infringe upon the economy and social viability of Halifax County. EXCEPTION: Only with those areas that through referendum would ask to be taken in.
There has been much said about consolidation of services by South Boston and Halifax County. Plase give your thoughts on this issue.
Marshall
There has been a lot said about "consolidation of services." Some people believe that we should consolidate into "one government." I do not believe the citizens of South Boston wish to give up their town charter. Some people believe that we should merge our police department with the county sheriff's office. I think each department does a good job with its assigned role. This type of consolidation of services is contrary to what is in the best interest of the public's welfare or safety; therefore I would not support such a merger. I would be in favor of avoiding the duplication of a service if the merging or sharing of services would not dilute the level of service, would improve effectiveness and efficiency and would not be harmful to the citizens or people associated with the decision. The point is, such changes must be looked at carefully and not merely suggested without a thorough and objective evaluation.
Wilborn
All issues of the consolidations services need to be carefully evaluated from every practical point of view. Consideration of consolidation should be looked at as either cost effective or as providing a better level of service at the same cost. There are some other areas that can be considered for consolidation, other than those currently agreed upon by the Town and County.
Owens
I believe there are some services that could and should be consolidated because they are compatible and would reduce duplication of services. I also believe that before any consolidation of services occurs, certain things must be present: 1) the same level of commitment must be present from all parties; 2) the level of services provided must be maintained or upgraded; and 3) taxpayers money must be saved as a result of such action. I believe that there are certain services that the citizens in South Boston pay for and are entitled to receive as residents of the Town. Some of those services include police and fire protection, street maintenance, garbage collection, and water and sewage Living within the town limits, many citizens are willing to pay a reasonable amount for these services.
Raab
Consolidation of services should be done if it makes "cents." Please note "cents" where it saves dollars. If we save money by consolidating services, than it should be done. However, we must be sure that it will save the taxpayers money and still provide them the services they desire.
Payne-Williams
I support the conditions/studies efforts embodied in the Boundary Adjustment Agreement recently signed by South Boston and Halifax County, which are:
-E911
-Park & Recreation
-Animal Control
-Water & Sewer
-Land use Planning
I also support the continuation of our local Police Department.
Janet Dismuke Scott of 104 East Forest Trail, South Boston died Thursday, April 30, 1998 at her home at the age of 39.
Mrs. Scott was born in Halifax County on January 13, 1959 the daughter of Nathaniel Dismuke and Burnell Lacks Dismuke. She was a member of Zion Grove Baptist Church and was an employee of Burlington Industries, Inc.
Survivors include two sons, Arthur Lee Scott Jr. and Darryl Deion Henderson, both of South Boston; her mother of Clover; two sisters, Patricia Williams of Midlothian and Brenda Smith of Clover; one brother, Samuel Dismuke of Clover; and her maternal grandmother, Thurla Lacks of Saxe.
Funeral services for Mrs. Scott will be held Sunday, May 3 at 3 p.m. at Zion Grove Baptist Church with Rev. Jefferson Goode officiating. Burial will follow in the church cemetery.
The family will receive friends at the home of Brenda D. Smith, 1184
Rev. Coleman Road, Clover.
John Edward Powell Jr. of 322 Southland Drive, Danville died Wednesday, April 29, 1998.
Mr. Powell was born on September 27, 1916 in Halifax County the son of John Edward Powell Sr. and Annie Lovelace Powell and was married to Margaret Hamilton Powell.
He was employed for over 40 years by Universal Leaf Tobacco Company, and was a member of Moseley Memorial Methodist Church, where he had been on the Administrative Board.
Survivors include his wife of the home; one daughter, Gail Powell Bass of Danville; one son, John E. Powell III of Halifax County; two sisters, Louise P. DeVito of Richmond and Virginia P. Swisher of Bethesda, MD; two brothers, Nathaniel T. Powell of Raleigh, NC and William M. Powell of Athens, GA; and three granddaughters.
Graveside services will be held Saturday, May 2 at 11 a.m. at Highland Burial Park by Rev. Richard Cobb.
The family will receive friends tonight, May 1 at 7:00 until 8:30 and
other times at the home.
Agnes Conner Anderson of 5249 Hunting Creek Road, Nathalie died Tuesday, April 28, 1998 at Halifax Regional Hospital. She was 77 years of age at the time of her death.
Mrs. Anderson was born in Halifax County on August 15, 1920 the daughter of John David Conner and Mary Lou Wilborne Conner and was married to Ralph Lacy Anderson. She was a member of Hunting Creek Baptist Church.
Funeral services will be held today, May 1 at 2 p.m. at Hunting Creek Baptist Church with Revs. Lee Roy Davis, Michael Phillips and Brian Walls conducting the service. Burial will take place in the church cemetery.
Mrs. Anderson is survived by two daughters, Amy A. Throckmorton and Phyllis A. Wilmouth, both of Scottsburg; two sons-in-law, Carl W. Throckmorton and Henry J. 'Buck' Wilmouth, both of Scottsburg; eight grandchildren, C.W. Throckmorton II, Jeffrey W. Throckmorton, Misty W. Meade, Tony Meade, Kim Wilmouth, Mary Beth Wilmouth, Katie Smith, and Jill Smith; and a special niece, Mary Ingram Gregory. She was preceded in death by three brothers, Everett, Tommy and John Conner, and one sister, Audrey Ingram.
Those wishing to give memorials are asked to consider Hunting Creek Baptist
Church.
Bernice Britton Jones of Ohio, formerly of Halifax County, died Sunday, April 5, 1998.
Mrs. Jones was born in Clover on November 12, 1919 the daughter of Addie Britton and Emma Coleman Britton.
After graduation from the public schools of Halifax County, she enrolled in St. Phillips School of Nursing. After receiving her degree in nursing, she was commissioned Second Lieutenant in the United States Army Nurse Corp in 1942. In 1960, she received a degree in Nursing Administration from Indiana University. Retiring from the United States Air Force in 1964, after 22 years of active duty, she was among the first African American nurses to attain the rank of Major. Upon retirement from serving her country, she made her home in Columbus, OH and began serving her community. She worked as a substitute teacher for the Columbus public school system, and became very involved in various civic and political causes. She was an active participant in the Senior Friends Program, a charitable organization that assists the elderly.
A funeral service was held Thursday, April 16 at Fort Myer Chapel, followed by burial with full military honors, in Arlington National Cemetery.
Survivors include her husband, Walter W. Jones; one daughter, Gwendolyn
J. Harshaw, and son-in-law, Gene G. Harshaw; one grandson, Zayne A. Harshaw;
one brother, James W. Britton, and other relatives and friends.
Mrs. Mary Wilborn Watts, 85, formerly of 414 McGhees Mill Rd., Roxboro, NC, died Wednesday, April 29, 1998 at the Rose Manor Healthcare Center in Durham, NC.
Mrs. Watts was born in Halifax County to Reuben and Libbie Trickey Wilborn. She was married to Rufus James Watts and was owner and operator of a family store in the Bethel Hill community for several years. She was a member of the Bethel Hill Baptist Church and the Women's Missionary Society.
Her survivors include her son and his wife: J. Allen and Jean L. Watts of Roxboro; four grandchildren: Ryan Allen Watts of Raleigh, Keith Aaron Watts of Roxboro, Janna W. Haverlock of Cary and Kara Anette Watts of Greenville; two great-grandchildren: Lauren Ashley Watts and Brenner Michael Haverlock.
A funeral service will be held Saturday, May 2 at 2 p.m. at Bethel Hill Baptist Church with the Rev. David Moore officiating. Burial will be held in the church cemetery.
Visitation will be held Friday at Brooks & White Funeral Home from 7-8:30 p.m. and at other times at the home of her son, 552 McGhees Mill Road.
Memorials may be made to the Bethel Hill Baptist Church, 201 Old US 501 Highway, Roxboro, NC 27573 or the American Heart Association, c/o Gracie Napier, 325 South Morgan Street, Roxboro, NC 27573.